stantial controversy, as reflected by several media campaigns, pro and con. Most
of the opposition comes from interested
parties in South Jersey who, despite the
potential revenues earmarked for Atlantic City, believe two North Jersey casinos
would be bad news for the state’s existing
gaming operations.

But while attention to the amendment
is mostly from casino interests, the November vote could also dictate the fate of
the state’s racing industry.

“If we don’t get approval in November,it’ll be a disaster,” says industry veteranAnthony Perretti, director of the SBO-ANJ and owner/operator of AnthonyPerretti Farm & Bloodstock in CreamRidge. “It could be the finish of NewJersey standardbred racing.”Perretti is the former general managerat Perretti Farms, also in Cream Ridge.

The farm—once New Jersey’s largest
horse-breeding operation—was founded
in 1986 by Perretti’s father, William J.

Perretti. At its peak in 2010, the farm had

6 stallions up for stud and 400 horses
in all at the end of the birthing season.

That ended in 2011, when Perretti sold
his broodmares and put the Monmouth
County farm up for sale. Shrinking
purses and the inability to compete with
Pennsylvania and New York breeders,
who get tax revenue from their states’
casinos, drove his decision.

“A farmer growing a crop has a certain
price point that [he can’t go below] to
be economically viable,” says Perretti.

“Likewise, raising equine has been ex-tremely difficult, not being able to com-pete with Pennsylvania and New York.”The industry’s suffocation by neigh-boring states has broader consequencesfor New Jersey’s economy. According toa 2007 Rutgers Equine Science Centerstudy, New Jersey’s equine industry hada $1.1 billion annual economic impactand created 13,000 jobs. Roughly $780

million of that was from thoroughbred
and standardbred racing-related operations and racetracks, which generated

7,000 jobs. In addition, the racing industry provided $110 million in federal, state
and local taxes each year. The numbers
have diminished since the study and
would likely go into a steeper decline
should the referendum fail.

Meanwhile, racing and gaming
in Pennsylvania and New York have
flourished. Pennsylvania has opened 12

casinos since 2007, and six of those are
“racinos”—a combined casino and racetrack (standardbred or thoroughbred).

New York operates 20 casinos, including
nine racinos. A majority of the tax revenue allocated to the racing industry in
those states supplements purse money.

That has been a key factor in drawing top
horses away from New Jersey tracks.

New York casinos have a graduated effective tax rate that starts
at 60 percent; the racing
industry gets 13 percent
of the tax revenue. In
Pennsylvania, the tax is 55

percent, with 12 percent
going to the Pennsylvania
Race Horse Development
Fund.

In contrast, Atlantic
City casinos pay a tax of

9. 25 percent—and none
of the revenue goes to the
horse-racing industry.

Racing received a short-lived purse supplementduring the administra-tion of former governor Jon Corzine—atotal of $90 million between 2007 and

2010 to thoroughbreds and standardbreds. Governor Chris Christie, who took
office in 2010, has focused on revitalizing Atlantic City. In a July 2010 article,
the Star Ledger reported that Christie
“declared the state government’s long
romance with horse racing dead.”

The November referendum—if it
passes—will amend the state constitution to allow the construction of two new
casinos, but details such as the tax rate
the casinos would pay will be hammered
out in enabling legislation. Many suspect
it will be at least 50 percent.

“It could very well be 50 percent,” saidAssemblyman Ron Dancer (R-CreamRidge), son of Harness Racing Hall ofFame driver Stanley Dancer. “There’s nodoubt in my mind...that it will be signifi-cantly higher than the current 9 percent.”Though the amendment guaranteesthat “no less than” 2 percent of the newtax revenue will go to the racing industry,many horsemen are not satisfied withthat number. The money is desperatelyneeded to enhance purses, which havedecreased almost every year since 2000.

However, 2 percent is paltry compared
to New York and Pennsylvania—and it
must be split between thoroughbreds
and standardbreds.

Enabling legislation could set a higher
percentage. Among those who will push
for a higher rate are the SBOANJ, the
industry’s advocacy group and stallion
registrar, and TrotPAC, the industry’s
political action committee.

“Two percent? Don’t worry about
that,” says Gulotta, who
last year lobbied 25 state
senators for their commitment to support the racing
industry.